Oil Dives 7% as Trump Tweets for More China Tariffs
Investing.com
Published Aug 01, 2019 01:55PM ET
Investing.com – Oil prices fell almost 7% on Thursday, the most this year, as President Donald Trump’s threat to put additional 10% tariff on China hammered a market already tanking on disappointment over an inadequate U.S. interest rate cut.
New-York traded West Texas Intermediate crude was down $3.92, or 6.7%, at $54.66 per barrel by 1:50 PM ET (17:50 GMT). The last WTI fell that much in a session was Dec. 24.
London-traded Brent, the benchmark for oil outside of the U.S., slumped $3.64, or 5.6%, to $61.41. Even before Thursday’s selloff, Brent had ended July down 2% at the close of Wednesday’s trading.
Trump, in a tweet expressing dissatisfaction at China’s lack of commitment to sealing a trade deal with the U.S., said his administration will on Sept. 1 be putting a “small additional tariff of 10%” on the remaining $300 billion of goods and products coming in from China.
“This does not include the 250 Billion Dollars already Tariffed at 25%,” the president added in his tweet.
Crude oil futures had tumbled earlier after a 25-basis-point cut on Wednesday by the Federal Reserve disappointed speculators eager for a reduction twice as large from the central bank. The dollar also jumped, giving investors more reason to bail out of a five-day oil rally.
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Written By: Investing.com
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